Health Benefits

Holidays
The Town of Fountain Hills recognizes the following days as paid holidays:

New Year's Day, January 1

Martin Luther King, Jr. Day, 3rd Monday in January

President's Day, 3rd Monday in February

Memorial Day, last Monday in May

Independence Day, July 4

Labor Day, 1st Monday in September

Veteran’s Day, November 11

Thanksgiving Day, 4th Thursday in November

Friday after Thanksgiving

Christmas Day, December 25

Certain employees may be required to work on a holiday. These employees are paid their regular rate of pay for the number of hours worked in addition to holiday pay for the number of hours worked (maximum of 8 hours).

Basic Life Insurance
As a full-time employee of the Town of Fountain Hills, you have a 1 times your annual salary basic life and accidental death coverage, up to a maximum of $150,000. The Town of Fountain Hills provides this benefit to full-time employees at no cost.

Voluntary Life Insurance
The Town of Fountain Hills offers a supplemental life insurance plan, which is designed to allow you to choose the amount of coverage you need and to pay for it conveniently through payroll deduction. Because the plan gives you the benefit of group rates, the price is better than you could get as an individual.

Employee coverage costs are calculated on age and amount of insurance elected.

Retirement Plan
The Town of Fountain Hills does not deduct Social Security taxes from full-time benefited employees’ paychecks. Instead, the Town has a mandatory 401A Retirement Plan. This plan is administered by ICMA Retirement Corporation (ICMARC).

Eligible employees contribute 11% of their gross pay to their retirement account. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested.

The Town of Fountain Hills will also contribute 11% of the eligible employee’s gross pay. These contributions are subject to a vesting schedule as follows:

Years of Vesting Service

% Vested

1 year of service

20%

2 years of service

40%

3 years of service

60%

4 years of service

80%

5 years of service

100%

Deferred Compensation Plan
The Town of Fountain Hills also provides an optional deferred compensation plan to all employees. Employees become eligible on their first day of employment. This plan is administered by ICMA Retirement Corporation. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. There is no employer match of contributions.

Under Section 457 of the Internal Revenue Code, you may defer each year a maximum of 100% of your "gross compensation" or an annual dollar limit, whichever is less. The dollar limits are:

Year

Contribution Limit

2013

$17,500

"Age 50" Catch-Up Limit

$5,500

Our plan allows you to increase, decrease, stop or restart contributions as often as you wish, without fees or penalties.

Sick Time
Full-time employees accrue sick leave at the rate of 4 hours each payroll period (104 hours per year). An employee who is in the introductory period may take sick leave with pay as soon as he / she has accrued any sick leave hours. An employee may accumulate a maximum 960 hours of sick time.

Employees with 10+ years of continuous full-time service who have a minimum of 480 banked sick time hours will qualify for a payout of 240 hours upon separation of service for any reason other than involuntary termination. Employees with 15+ years of continuous full-time service who have a minimum of 720 banked sick time hours will qualify for a pay out of 480 hours upon separation of service for any reason other than involuntary termination.

Sick leave may not be counted toward the computation of overtime. Sick leave will not accrue for any payroll period during which an employee is absent for more than 6 working days, except for absences during which the employee is being paid for accrued vacation time, personal time, sick time, and holidays. Sick leave should be treated as a form of insurance and not as extra days off from work.

Tuition Assistance
The purpose of the tuition reimbursement plan is to encourage the development of all full-time employees. Tuition reimbursement may be granted for courses that are work-related, that may be necessary to obtain a degree that may make the employee more valuable to the organization, that maintain or improve the skills required by employees in their employment, that may be necessary for the anticipated needs of the organization, or that may make employees more valuable to the organization. Courses must be taken at an accredited college, university, an approved trade school, or an approved technical school. When questions arise concerning whether or not a course qualifies under the plan, they will be reviewed by the Human Resources Administrator for recommendation to the Town Manager.

Education Reimbursement
Before enrolling in a course, an employee must apply for education reimbursement and have it approved by his/her supervisor. The application shall be submitted to the Town Manager for final approval.

Reimbursement Amount
The maximum amount of reimbursement is based on an employee’s years of service and is subject to availability of appropriate funds on an annual basis. Employees must complete 1 year of full-time service before they are eligible for this benefit. The maximum annual (calendar year) reimbursement amount for undergraduate courses is $1,500 during the second year of service and $2,500 during the third year and each year thereafter. The maximum annual (calendar year) reimbursement amount for graduate courses is $2,500 during the second year of service and $3,000 during the 3rd year and thereafter. The maximum dollar amounts will be reviewed on a regular basis in an effort to be comparable to credit hours at Arizona State University.

Grade Requirements
Reimbursement will be made upon successful completion of the course (a grade of “C” or better or a “pass” for a pass/fail course). In order to receive payment, the employee must provide a copy of the official grade report and all relevant receipts. To obtain reimbursement, the employees must still be employed by the Town of Fountain Hills at the time reimbursement is paid.

Repay Requirements
Because this benefit is offered to employees to maintain or improve their required skills and to encourage their further development while increasing their contribution to the organization, any employee who leaves the Town of Fountain Hills within 2 years of receiving any tuition reimbursement will be required to repay any tuition paid on his/her behalf during the last 24 months of employment.

Any deficiency owed under this program becomes immediately due and payable at the time of termination. The organization has the right to deduct any deficiency from any monies due and owing the employee including, but not limited to paychecks or expense checks.

Vacation

Vacation with pay is available to eligible employees. The amount of paid vacation time an employee receives each year increases with the length of their employment. Vacation time begins to accrue with the employee’s first full biweekly pay cycle based on the table below:

Full-Time Employees

Length of Service

Hours per Pay Period

Hours per year

Start date through completion of 3rd year

4

104

4th year through completion of 7th year

5

130

8th year through completion of 10th year

6

156

11th year through completion of 15th year

7

182

16+ years

8

208

Employees are encouraged to use vacation annually rather than accruing hours. The Town reserves the right to postpone or cancel vacations in the event of any emergency.

An employee is eligible to take accrued vacation after completing 6 months of employment. Termination of employment prior to completion of 6 months of employment voids accrued vacation.